Minnesota Power Files Rate Request and Asks State Regulators to Increase Its Annual Operating Revenue
November 01 2019 - 12:00PM
Business Wire
Continued investments in EnergyForward
are transforming how energy is produced, delivered and
used
Minnesota Power, a utility division of ALLETE (NYSE: ALE), is
filing a request today with state regulators to increase its annual
operating revenue by $65.9 million and adjust rates for electric
customers to continue its commitment to deliver safe, reliable
energy from increasingly cleaner sources. The request reflects
changes in customer demand, increasing operating expenses and
recovery of costs associated with regulatory obligations since the
company’s last rate case filed in 2016.
“We are pleased with the continued success of our
EnergyForward strategy that ensures reliable and safe energy
for customers as we transform the way energy is produced and
delivered,” ALLETE President Bethany Owen said. “Minnesota Power is
on pace to reach 50 percent renewable energy by 2021, a remarkable
accomplishment given that we currently offer the lowest average
electric rates for residential customers in Minnesota.”
Minnesota Power’s full request proposes monthly rates for the
average residential customer to increase by $11.66 per month,
maintaining its customers’ position below state and national
averages with a total average residential bill of $89.82 per month.
The increase for the average small business customer would be
$30.05 per month.
As part of today’s rate filing, the company has requested an
interim rate increase of 7.7 percent for all customers be
implemented in early January 2020. The interim rate will remain in
effect until a decision is made on final rates.
As a regulated electric utility, Minnesota Power must receive
approval from the Minnesota Public Utilities Commission (MPUC)
whenever changes in revenue and expenses require adjusting its
rates. Over the next year, the MPUC will receive feedback from
state agencies and interested parties before making a decision on
the rate request. As part of the MPUC’s public process, an
administrative law judge will hold public hearings to provide
customers with an opportunity to learn more about the rate request
and offer public comment.
Through EnergyForward, Minnesota Power has transformed
its energy supply in recent years to be 30 percent renewable by
closing or converting seven of its nine coal generating units and
significantly expanding wind and solar resources. By 2021 the
company expects to be 50 percent renewable with the addition of 250
megawatts of wind power and more than 250 megawatts of hydropower
to be delivered from Manitoba Hydro via the Great Northern
Transmission Line. A planned natural gas power plant will support
the addition of more renewables in the future by providing energy
when solar and wind resources are in short supply.
“Our investments in renewable and lower-carbon energy, along
with the modernization of our regional power grid, are meeting the
changing expectations of our customers and communities,” said Frank
Frederickson, Minnesota Power vice president of Customer
Experience. “With our exceptional energy conservation programs,
along with renewable energy programs and digital tools like the
Minnesota Power App, our customers also have more options today
than ever before to help them control and reduce energy use and
choose the types of energy they prefer.”
Minnesota Power has undertaken significant cost management
steps, reducing operations and maintenance costs by nearly 20
percent since 2014.
While the proposal also increases rates for business customers,
their increase reflects the lower cost of service per kilowatt hour
required by these customers, as demonstrated through analysis
submitted by Minnesota Power as part of its filing with the state.
Minnesota Power has recently obtained MPUC approval to increase
assistance for low-income customers with their monthly energy
bills, supporting the most economically vulnerable customers in our
communities as they enter the winter heating season.
“As public policy and new technology alter the energy landscape,
we believe Minnesota Power’s EnergyForward plan is leading
the way to a cleaner and more reliable energy future while keeping
rates affordable for families and businesses in our area,” Owen
said.
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security and quality of life for 145,000 customers, 15
municipalities and some of the largest industrial customers in the
United States. More information can be found at www.mnpower.com.
ALE-CORP
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20191101005440/en/
Amy Rutledge Manager - Corporate Communications Minnesota
Power/ALLETE 218-723-7400 arutledge@mnpower.com
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